Formulas

Question 1

BAC (Budget at Completion)

Answer 1

No formula, see approved budget

Question 2

PV (Planned Value)

Answer 2

(% time completed) x (BAC)

Question 3

EV (Earned Value)

Answer 3

(% work completed) x (BAC)

Question 4

AC (Actual Cost)

Answer 4

No formula, $ amount spent

Question 5

CV (Cost Variance)

Answer 5

CV = EV - AC

Question 6

SV (Schedule Variance)

Answer 6

SV = EV-PV

Question 7

CPI (Cost Performance Index)

Answer 7

CPI = EV/AC

Question 8

CPIc (Cumulative Cost Performance Index)

Answer 8

CPIc = EVc/ACc

Question 9

SPI (Schedule Performance Index)

Answer 9

SPI = EV/PV

Question 10

EAC (Estimate At Completion)

Answer 10

EAC = BAC/CPIc

Question 11

ETC (Estimate To Completion)

Answer 11

ETP = EAC-AC

Question 12

VAC (Variance At Completion)

Answer 12

VAC = BAC-EAC

Question 13

TCPIc (To Complete Performance Index)

Answer 13

TCPIc = (BAC-EV)/remaining funds

Question 14

BCR (Benefit Cost Ratio)

Answer 14

BCR = expected value/expected cost

Question 15

EVA (Economic Value Add)

Answer 15

EVA = after tax profits - (capital invested x cost of capital)

Question 16

NPV (net present value)

Answer 16

NPV = present value - cost of the project

*note that present value is sometimes represented as PV (same as planned value).

Question 17

ROI (Return on Investment)

Answer 17

ROI = (Benefit - Cost) / Cost

Question 18

ROIC (Return on Investment Capital)

Answer 18

ROIC = Net income after tax / total capital invested

Question 19

Beta Distribution

Answer 19

Beta Distribution = (pessimistic + 4(realistic) + Optimistic) / 6

Question 20

Triangular Distribution

Answer 20

Triangular Distribution = (pess. + real + opt) / 3

Question 21

EMV (Expected Monetary Value) / Decision Tree Analysis

Answer 21

EMV = probability x value

Could have multiple probabilities, which would result in multiplying all probabilities by the value.